Don't Buy Life Insurance Until You Watch This Video - YouTube

Own your insurance. Be self-insured. In  this episode, I am going to share "Don't  

buy your life insurance until you watch this  entire video". Get ready to be blown away.

So, I'm Doug Andrew and I've  helped many, many people  

choose the right kind of insurance especially  life insurance now for more than 4 and a half  

decades. So, the purpose of this video is to  educate you and I would strongly recommend  

anybody that you know that is considering buying  insurance, watch this video. So, share, comment,  

click like, subscribe to my channel  because what I'm about to share with you  

will make a huge difference on how you should  own your insurance, become self-insured.  

So, get ready. I'm going to explain the three  types of insurance and what you can do instead  

of paying for your insurance. How you will own it  and become self-insured and how you can have your  

insurance become cheaper as you get older. So,  there are basically 3 types of life insurance,  

term insurance where you pay just the pure cost  of the chance of you dying, that's the mortality  

cost. There is whole life insurance that allowed  people to be able to sort of overpay the younger  

years in their life. And then underpay later on  by paying a level premium that build up equity  

or cash value in the policy. So, you could pay a  level premium your whole life instead of having to  

pay a higher premium every single year with pure  term insurance. Well then, there's a third type of  

life insurance and that was actually designed for  life --for living benefits not just death benefit.  

So, when Ef Hutton came up with this idea, it  wasn't term insurance. It wasn't a whole life.  

It was universally applicable to all kinds of  situations if you want to save for retirement  

and use it for death benefit so they called  it universal life. It was incredible. So,  

this is max-funded universal life is the third  type of insurance. That came out in 1980 and  

it was the brainchild of EF Hutton. They were not  an insurance company. They were a brokerage firm.  

And they began to realize, "Whoa, wait a minute  here." Life insurance is this tax-free sacred  

cow in the internal revenue code now for over  a century that allows people to accumulate that  

cash inside the insurance policy tax-free. Why?  Because the government wants to incentivize people  

to protect themselves. So, if they happen to die,  their widows and orphans won't be dependent upon  

the government. So, it's allowing people to have  tax advantages on the death benefit but also on  

the cash inside of it because people are taking  ownership. So, that concept of taking ownership  

took hold in 1980 and EF Hutton said well let's  use it for people's retirement because back then,  

they were telling people buy term insurance invest  the difference and maybe you'll earn 12%. Well,  

maybe. In actuality, most people who have money  in the market could earn 6 to 9 percent if they  

left it there, if they bought and held their  money there. Most people don't do that. They  

get nervous when the market goes down and they  sell low and then they wait, wait and buy high.  

So, Dalbar who studies investor behavior  reveals that most Americans only actually  

earn 3.5%. That's pretty pathetic. So, EF  Hutton said, "Even if you could earn 12,  

at the end of the day, you're only going to net 7  or 8." Because if you're earning 12% and you have  

to pay tax on that growth, on that income; sooner  or later like with tax-deferred IRAs and 401(k)s,  

you're not netting 12. You are only netting 8 in  a 33% bracket. If you had a million dollars for  

example and you're earning 12% that'd be 120,000.  You pull out 120,000 out of an IRA, 401(k);  

you have to pay tax between federal and state  taxes of about a third or 40,000. You're only  

netting 80,000 to buy gas and groceries, does  that make sense? Most asset managers charge 1%.  

Asset management fee every year on that nest  egg, on that million. That's another 10,000. So,  

you're really only netting 70,000 after taxes  and fees. So, EF Hutton back in 1980, they said,  

"Why don't we just earn 11 and net 10  inside of an insurance company because  

they're safer? They're less volatile.  Your money's not at risk in the market."  

And so, you earn 11 and one of those percentage  points needs to pay for the insurance that  

the irs says has to be there if it falls under  tax-free insurance in the internal revenue code.  

See, if it moves over to a taxable investment,  you just lost all of that. In order to do that,  

you took the least amount of insurance the IRS  would let you get away with and you put in the  

most money the IRS allows as fast as they  allow and it turns into a tax-free cash cow.  

So, in essence, when this first came out  in 1980, I thought, "Wow, this is Buy Term,  

Invest The Difference on steroids because it's  under a tax-free umbrella." Long story short,  

I had people putting in 10 thousand, 50  thousand, 500 thousand. They put in 500 thousand,  

they're earning 11%. They never earned less  than 11 and three quarters from uh 1980 to 1990,  

in fact. They earned as high as 15 and a  half. But if you earned 11, you netted 10.  

That 1% was the cost of the insurance that made  the whole thing tax-free. Well, I would rather  

earn safely 11 and net 10 than to have to earn 15  or 16 to 10 in mutual funds of the stock market.  

Because most the time people at best would only  earn 12 and net 7. So, what would you rather have?  

A net of 7 after tax and fees or a net of 10 after  insurance costs and fees. Are you getting it? So,  

this is why you want to own your insurance, take  the least amount the IRS will let you get away  

with putting the most money. And all of a sudden,  it becomes like a financial swiss army knife. You  

can use insurance for retirement planning, for  college funding, for your kids and grandkids. It  

knocks the socks off of a 529 plan. For business  working capital, for real estate management,  

emergency funds, pension maximization if you're a  school teacher. All of these uses for this because  

it allows you to accumulate your money tax-free,  access your money tax-free. And when you die,  

anything left in there blossoms and transfers  income tax-free. Can you think of anything else  

that does that? This is why it's the dream  solution for so many goals. And people go,  

"Well, I've never seen one that does that."  Well, sometimes when I hear advisors say that,  

"Oh, that's your reasoning? Because you've never  seen one designed? You've never seen one that is  

structured to get cheaper as you get older?" Yeah,  my insurance gets cheaper as I get older because  

when I put the money in there, it qualifies as  part of the death benefit. And within 15 years,  

basically, it costs very, very little. If I earned  right now on policies that I've had for 30 years,  

I'm 30 years older, it cost me 120th what it did  30 years ago. Because the amount of insurance  

that I'm paying for got lower as my cash took  the place of the death benefit. If you want to  

learn more about how this happens to where if  I earned 11% this year like I have many years,  

I would net point 10.95. It gets cheaper as  I get older. My rate of return gets better  

retroactive back to day one. That's what I mean  by self-insuring. When you self-insure yourself,  

you will be able to own insurance and your own  money will actually be the insurance. Because  

that's the goal when people say buy term, invest  the difference. And when you finally get enough  

money, you can let go of the term insurance.  That's basically what you're doing here. Your cash  

is growing faster tax-free to where at the end of  15, 20 years, you basically own your insurance,  

you've self-insured. And it's all your own money  but it's tax-free because it's still protected  

under that umbrella. Is this making sense? So,  let me show you how you can learn more about this  

profound strategy that unfortunately only the  wealthy seem to understand and use the most. So,  

let me connect the dots. And as I do this, if this  is intriguing you, feel free to share with someone  

else who want to hear this. Click like or comment.  Subscribe to this 3-Dimensional Wealth channel  

because I post an in-depth answer to a financial  question almost daily, okay? And it's free. So,  

you need to ask yourself what is the purpose  for the insurance. Is it just for death benefit?  

Or is it for living benefits? Or is it for both?  You could use any one of the 3 types if it's just  

for death benefit. But if you want to use it for  death benefit and for living benefits and you  

want to structure it to be the least expensive  insurance you will ever own, I would recommend  

maximum funded universal life and I would use  indexed universal life because that way, your  

money will grow when the economy does well but you  will not lose when the economy goes down because  

your money is not at risk in the market. So, when  we look at this, if you buy term insurance and you  

end up needing insurance later on, can you believe  that the biggest purchasers of life insurance  

are people over age 70 who have tons of money?  Why? I explained that in other episodes.  

It's because where else could they put money and  have it grow tax-free create tax-free income and  

when they die it doubles or triples instantly  and transfers tax-free? This is where wealthy  

people put their money. So, if you simply buy  term insurance, that's like renting. If you want  

to own your insurance, okay? I'd rather own a home  than rent it because I'm building up that equity.  

Does that make sense? But you want to own it the  right way. If you're doing it for living benefits,  

hands down, max-funded index universal  life will outperform whole life insurance  

with the same premium, okay? I can usually  earn at least 2 to 3 percent higher rates of  

return on universal life than whole life. You will  understand why in our most recent bestselling book  

I show you the difference here with my two sons  who are co-authors with me on this book. And so,  

in a nutshell, you're trying to get the least  amount of insurance you can get away with under  

IRS rules, put in the most money but you have all  kinds of flexibility to use it for goals such as  

retirement. Most people when they understand it,  they use it for tax-free accumulation, access and  

transfer for retirement but also for all kinds  of other financial goals. When you do this, then  

every million dollars that you accumulate inside  of an insurance policy which I call the Laser Fund  

can generate 60 thousand, 80 thousand, 100  thousand dollars a year of tax-free income  

for as long as you lived if you live to be 120.  And when you die, it blossoms, transfers down to  

your family. They put it into their own  laser funds. And then later on when they die,  

it blossoms again. This is how we fund our family  bank into perpetuity. Every time somebody passes  

away in our family, we allocate a portion  of that death benefit because it's tax-free  

into tax-free Laser Funds for the next generation.  And our family bank is what I call it goes...  

We'll never run out of money  because we are harnessing the power  

of owning insurance. And that's why i wanted you  to watch this video because you probably went,  

"Whoa! I've never thought of this before." So,  here's how you can learn more. If you click  

below or go to laserfund.com (LASERfund.com),  but the easiest way, just click below. There's  

a link there where you can claim your free copy.  I want to gift you a copy of this 300-page book.  

And it's actually 2 books in 1.  See this? This one is 200 pages but  

that has all kinds of charts and graphs. If you're  a right-brain thinker, you turn it over and read  

this one. This has 62 actual stories. But I  want to empower you on how to diversify and  

create the foundation for a tax-free retirement by  using (what?) life insurance. So, don't you dare  

buy life insurance until you have watched this  video and shared it with others. And then you will  

be empowered on how to own your insurance,  to be self-insured. Does that make sense?